The Reinsurance (E) Task Force (“RTF”) of the US National Association of Insurance Commissioners (“NAIC”) held a virtual meeting on July 24, 2023, in lieu of meeting in person at the NAIC’s 2023 Summer National Meeting. In addition to routine matters such as adoption of the RTF’s 2023 Spring National Meeting minutes and minor revisions to RTF’s 2024 Proposed Charges, the meeting covered the following matters.
Reinsurance Financial Analysis (E) Working Group
The RTF received and adopted the report from the Reinsurance Financial Analysis (E) Working Group (“ReFAWG”). ReFAWG meets regularly in regulator-to-regulator sessions to assess certified and reciprocal jurisdiction reinsurers for passporting. As of July 24, 2023, ReFAWG has approved 61 reciprocal jurisdiction reinsurers and 41 certified reinsurers for passporting. ReFAWG reported that 41 states have already passported at least one reciprocal jurisdiction reinsurer, and additional states are expected to do so in the near future. “Passporting” is the process under which a reinsurer applies to an initial or “lead” state for recognition as a reciprocal jurisdiction or certified reinsurer, following which ReFAWG evaluates and makes its recommendation concerning the status (and any related rating for the reinsurer). Other states can then choose to defer to the lead state’s determination for recognizing a reinsurer as a reciprocal jurisdiction or certified reinsurer, which leads to administrative efficiency in obtaining and maintaining reciprocal jurisdiction or certified status in multiple states given the reduced level of information that must be submitted to states other than the “lead” state. According to the ReFAWG, the passporting process seems to be working well for all relevant parties.